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The Lowdown: betting on virtual games of skill legalized in Nagaland

The governor of Nagaland has given his assent to the ""The Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill" Bill, 2015", report Glaws, which broke the story, and Livemint. "Games of Skill" include card based games like Rummy and Poker, quizzes and strategy games, and virtual sports (including virtual Cricket, virtual racing games) and adventure, virtual stock trading, as well as fantasy leagues. These will be allowed in the state of Nagaland and applicable in territories in India where games of skill are permitted. Implications of this development Firstly, it could lead to other states also allowing betting and wagering with money in online games, as well as on games of skill. Remember that the Lodha Committee report on the BCCI recommends legalization of betting on sports. Secondly, it will test the issue of state-specific jurisdiction with respect to the Internet in India. Can someone sitting in Delhi participate with money in a Rummy tournament via an application run by a company based in Nagaland? Is the game being played in Nagaland or in Delhi? Thirdly, in a similar manner, how will taxation work? If state specific taxes applicable, and more than one state legalizes betting on virtual games, how will taxation work across state lines? Taxation might actually be the issue that pushes for clarity on jurisdiction. While a copy of the final act isn't available online, MediaNama has a copy of what is believed to be the bill, dated July 2015, when it was…

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Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

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